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The Flag Boardroom Team Consults Clients On Low Risk Capital
Flag’s Team offers new services to address access to capital not previously available to most companies.
By: Flag Lease Group
“The problem facing most companies today is that the limited access to working capital can often get in the way of ambitious growth plans. In today’s highly turbulent credit marketplace, banks and traditional lenders are becoming more difficult to work with and businesses have to look elsewhere for creative, low risk solutions.” says Fleet & Financial Services Manager, Ian Pallett
To address this challenge, the BoardRoom Team is working with companies to take advantage of an innovative form of financing know as a “sale-leaseback”
“A sale-leaseback turns existing equipment into immediate cash, making capital available for other investments, upgrades, working capital, paying off other debt or any other purpose a company may need.” stated Mr. Pallett
With sale-leaseback, a company can actually sell its equipment for fair market value (not book value) and then lease it back over a fixed payment period. At the end of the lease term, the company can choose to extend the lease, buy the equipment back for a fixed purchase price or even upgrade their equipment.
In addition to providing ready working capital, sale-leaseback transactions are advantageous for a number of reasons:
• Continued use – Company retains all use of the equipment and continues using it to generate revenue.
• Potential income tax benefits – Like most leases, a sale-leaseback offers tax advantages compared to traditional bank financing. Over the course of the lease companies may be able to write off 100% of the payment.
• No extra collateral needed – Unlike traditional bank financing; typically no collateral is needed beyond the equipment itself. Equipment valuations are relatively fast and simple.
• Tailored payments – Like all leases, payments can be tailored to meet a company’s cash flow, including a fixed, stepped or seasonal payment schedules.
• Preserve lines of credit –Lease payments won’t interfere with bank credit lines, allowing companies to preserve these funds for other business priorities.
Sale-Leaseback solutions work for virtually any asset(s) that is owned outright so long as the useful life of the asset(s) doesn’t exceed the lease term
Flag Lease has offered creative, low-risk asset management solutions for over 20 years, to a wide range of industries, across western Canada. By providing quick, easy access to capital through simple transactions, Flag offers a strategic alternative to bank financing and can become an integral part of the growth strategy for any competitive business.
Flag Lease Group is western Canada’s premier originator of A, B, & C credit leases. Whether a start-up business or an established business, the Flag BoardRoom Team has access to the funding that can help companies accomplish their goals.
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Flag Lease Group, an division of Flag Automotive Sales & Lease Ltd, is a 100% Canadian owned and operated Financial Services Company providing automotive, truck and equipment leasing, and asset management services to a wide variety of industries.